As we enter into 2020 it is time to reflect on what the future of fulfillment will be. 20 Years ago, E-commerce accounted for only 21 Billion USD of which over 30% was due to computer hardware. Anyone remember Gateway Computers, which started in 1985. At the time the average consumer expected their online order to be delivered sometime in the next 10 - 12 days and had very little visibility to the fulfillment process. Now in 2019 E-commerce accounts for 700 Billion USD in the United States alone!
The statistics are staggering when you consider that global e-commerce in 2020 is projected to exceed 4 TUSD and on average 36% of consumers income is spent on-line. Every single market has been impacted by this trend to online shopping to include restaurants, apparel, travel, electronics and so many more. Now if you are in logistics you know that it's not just sales growth, but also the changes in consumer expectations. Could you ever imagine having the opportunity to order a custom made M&M with your face on it and have it delivered in 24 hours? Or how about designing your own Nike shoe and having it delivered in time for your next run?
This rapid and aggressive change has created opportunities for so many companies to try and solve new business challenges. In general the summary is: we can't project our e-commerce sales growth and we just know we need to ship more and faster. The traditional logistics engineer is struggling to adapt to these unknowns as they have been taught for years that you define the requirements first and then design a solution. In this case though the requirements continue to change faster than the solution can be implemented. Therefore the companies achieving rapid success are those that have solved the problem by implementing non traditional solutions such as AMR(s) to move product instead of conveyors or robotics to pick and pack items instead of trying to staff for hourly peaks and of course leveraging individuals to perform last mile delivery.
Ultimately this story is continuing to change as the market is rapidly being impacted by growth, a labor shortage and the constantly evolving consumer expectations. Based upon these things we started this organization of Fulfillment Automation, which allows real-time market feedback and intelligence to drive accelerated growth of Next Generation Solutions.
We look forward to defining the future with you and just ask that you participate with us to create a true platform of knowledge and not a one direction media stream.
Welcome to the future of Fulfillment Automation!